Weidai Ltd. (NYSE: WEI)

Weidai Ltd. (“Weidai” or the “Company”) (NYSE: WEI), a leading auto-backed financing solution provider in China, recently stated its unaudited financial results for the 2nd-quarter finished June 30, 2k19.

2nd-quarter 2k19 Financial Highlights:

  • Net revenues were RMB906.70M (US$132.10M) in the 2nd-quarter of 2k19, a decline of 4.40% from RMB948.40M in a similar duration of 2k18 and a decline of 4.50% from RMB949.70M sequentially.
  • Loan facilitation service fees were RMB758.50M (US$110.50M) in the 2nd-quarter of 2k19, contrast to RMB752.20M in a similar duration of 2k18 and RMB766.90M in the 1st-quarter of 2k19.
  • Post-facilitation service fees were RMB89.00M (US$13.00M) in the 2nd-quarter of 2k19, a boost of 7.20% from RMB83.10M in the similar duration of 2k18 and a boost of 6.60% from RMB83.50M sequentially.
  • Net income was RMB106.90M (US$15.60M) in the 2nd-quarter of 2k19, contrast to RMB182.70M in the similar duration of 2k18 and RMB109.00M in the 1st-quarter of 2k19.
  • Adjusted net income[1] was RMB130.10M (US$18.90M) in the 2nd-quarter of 2k19, a contrast to RMB205.40M in the similar duration of 2k18 and RMB134.60M in the 1st-quarter of 2k19.

 

2nd-quarter 2k19 Financial Results

Net revenues reduced by 4.50% to RMB906.70M (US$132.10M) in the 2nd-quarter of 2k19 from RMB949.70M in the previous quarter, mainly because of declines in other revenues and net financing income. The decline was partially offset by a boost in post-facilitation service fees. The Company’s take rate[2] raised to 5.00% in the 2nd-quarter of 2k19 from 4.80% in the previous quarter.

  • Loan facilitation service fees remained relatively stable at RMB758.50M (US$110.50M) in the 2nd-quarter of 2k19, contrast to RMB766.90M in the previous quarter. In the 2nd-quarter of 2k19, the impact of applying ASC 606 resulted in a decline in loan facilitation service fees of RMB 126.40M (US$18.40M).
  • Post-facilitation service fees raised by 6.60% to RMB89.00M (US$13.00M) in the 2nd-quarter of 2k19, from RMB83.50M in the previous quarter.
  • Other revenues reduced by 58.50% to RMB21.40M (US$3.10M) in the 2nd-quarter of 2k19, from RMB51.60M in the previous quarter, mainly because of the reclassification of insurance revenue, which formerly was recorded under other revenues, to loan facilitation service fees and post-facilitation service fees according to its nature.
  • Net financing income reduced by 20.70% to RMB37.80M (US$5.50M) in the 2nd-quarter of 2k19, from RMB47.70M in the previous quarter, mainly because of a decline in loan balance of the Company’s on-balance sheet loans.

Provision for loans and advances raised by 3.30% to RMB252.30M (US$36.80M) in the 2nd-quarter of 2k19, from RMB244.10M in the previous quarter. Provision for loans and advances as a percentage of total loan volume reduced to 1.40% in the 2nd-quarter of 2k19 from 1.60% in the previous quarter. Provision for loans and advances as a percentage of the net revenue raised to 27.80% in the 2nd-quarter of 2k19 from 25.70% in the previous quarter.

Operating costs and costs reduced by 2.40% to RMB566.70M (US$82.50M) in the 2nd-quarter of 2k19, from RMB580.80M in the previous quarter. Operating costs and costs as a percentage of net revenues raised to 62.50% in the 2nd-quarter of 2k19 from 61.20% in the previous quarter.

  • Provision for financial guarantee liabilities raised by 53.50% to RMB82.70M (US$12.00M) in the 2nd-quarter of 2k19, from RMB53.90M in the previous quarter.
  • Origination and servicing costs reduced by 15.20% to RMB319.10M (US$46.50M) for the 2nd-quarter of 2k19 from RMB376.40M in the previous quarter, mainly because of continued cost optimization efforts. Origination and servicing costs as a percentage of net revenues reduced to 35.20% in the 2nd-quarter of 2k19 from 39.60% in the previous quarter.
  • Sales and marketing costs raised by 56.40% to RMB76.40M (US$11.10M) for the 2nd-quarter of 2k19 from RMB48.90M in the previous quarter, mainly because of a boost in online marketing activities in the 2nd-quarter of 2k19.
  • General and administrative costs reduced by 23.50% to RMB58.20M (US$8.50M) for the 2nd-quarter of 2k19 from RMB76.10M in the previous quarter. The decline was mainly because of a decline in staff costs.
  • Research and development costs raised by 18.30% to RMB30.20M (US$4.40M) in the 2nd-quarter of 2k19 from RMB25.50M in the previous quarter, mainly because of continued investment in technology infrastructure and systems.

Share-based compensation costs reduced by 9.50% to RMB23.20M (US$3.40M) in the 2nd-quarter of 2k19, from RMB25.60M in the previous quarter.

Income tax costs reduced by 64.70% to RMB13.40M (US$2.00M) for the 2nd-quarter of 2k19, from RMB38.10M in the previous quarter.

Net income reduced by 1.90% to RMB106.90M (US$15.60M) in the 2nd-quarter of 2k19, from RMB109.00M in the previous quarter.

Net income and comprehensive income attributable to ordinary shareholders reduced by 2.00% to RMB103.30M (US$15.10M) in the 2nd-quarter of 2k19, from RMB105.40M in the previous quarter.

Adjusted net income reduced by 3.30% to RMB130.10M (US$18.90M) in the 2nd-quarter of 2k19, from RMB134.60M in the previous quarter.